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The Democratic Republic of Congo (DRC) has secured a total of $2.767 billion in loans from the International Monetary Fund (IMF) to bolster its economy amidst global uncertainties.
The IMF Executive Board approved two key arrangements for the DRC: a 38-month Extended Credit Facility (ECF) worth $1.729 billion, equivalent to 125% of the country’s quota, and a 38-month Resilience and Sustainability Facility (RSF) amounting to $1.038 billion, representing 75% of the quota.
Objectives of the Loan Packages
The ECF-supported program aims to:
- Preserve macroeconomic stability.
- Improve the business climate.
- Enhance governance and transparency.
- Foster inclusive economic growth.
Meanwhile, the RSF-supported program focuses on advancing the DRC’s climate adaptation and mitigation strategies while solidifying its position as a “solution country” in the global transition to a low-carbon economy.
Economic Progress and Challenges
The DRC demonstrated strong economic resilience in 2024, with real GDP growth projected at 6.0%. Inflation, which had spiked to 23.8% at the end of 2023, dropped to 12.8% in November 2024 and continues to decline. Additionally, the country’s fiscal and current account deficits narrowed, supported by stronger-than-expected revenue mobilization.
The new ECF arrangement builds on the progress made under the 2021-2024 program completed in July 2024. It aims to deepen public financial management reforms, strengthen revenue mobilization, and improve accountability in public resource utilization.
Climate Resilience and Sustainability
Under the RSF program, the DRC is set to enhance its climate resilience and promote sustainable practices. This includes:
- Protecting the country’s vast rainforests.
- Building resilience to climate-related disasters.
- Integrating climate considerations into public investment management.
Key Statements from the IMF
Deputy Managing Director and Chair, Mr. Kenji Okamura, highlighted the DRC’s economic resilience despite significant challenges, including armed conflicts in the eastern region and a public health crisis linked to the Mpox outbreak.
“The authorities have made notable progress under the 2021 ECF, achieving stronger-than-expected economic growth and increasing foreign exchange reserves. However, macroeconomic, structural, and climate-related challenges persist, requiring deeper reforms,” he stated.
Mr. Okamura outlined the authorities’ commitment to:
- Boosting growth and creating fiscal space for priority investments and social spending.
- Strengthening fiscal discipline and improving public financial management through measures such as operationalizing the Directorate-General of the Treasury, decentralizing payment authorizations, and establishing a Treasury Single Account.
- Transitioning to a resource-based fiscal framework to stabilize budgets and curb spending volatility.
The Central Bank of the Congo (BCC) has maintained a tight monetary policy to combat inflation, which has yielded significant progress. Efforts to strengthen monetary policy implementation and accumulate international reserves will continue.
A Path to Inclusive Growth and Climate Leadership
The RSF arrangement will help the DRC navigate economic challenges while advancing its climate agenda. By focusing on protecting its rainforests and integrating climate priorities into development plans, the DRC is poised to strengthen its role in the global low-carbon transition.
This ambitious loan package underscores the IMF’s support for the DRC’s strategic vision of fostering economic growth, improving governance, and building resilience to global and domestic challenges.
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